Correlation Between Thrivent High and Nutanix

Can any of the company-specific risk be diversified away by investing in both Thrivent High and Nutanix at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Thrivent High and Nutanix into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Thrivent High Yield and Nutanix, you can compare the effects of market volatilities on Thrivent High and Nutanix and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Thrivent High with a short position of Nutanix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Nutanix.

Diversification Opportunities for Thrivent High and Nutanix

0.28

Correlation Coefficient

Thrivent High  Nutanix

Modest diversification

The 3 months correlation between Thrivent and Nutanix is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Nutanix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutanix and Thrivent High is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Thrivent High Yield are associated (or correlated) with Nutanix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutanix has no effect on the direction of Thrivent High i.e., Thrivent High and Nutanix go up and down completely randomly.

Pair Corralation between Thrivent High and Nutanix

Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.08 times more return on investment than Nutanix. However, Thrivent High Yield is 13.15 times less risky than Nutanix. It trades about -0.32 of its potential returns per unit of risk. Nutanix is currently generating about -0.08 per unit of risk. If you would invest  426.00  in Thrivent High Yield on September 29, 2024 and sell it today you would lose (5.00) from holding Thrivent High Yield or give up 1.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Thrivent High Yield  vs.  Nutanix

Thrivent High Yield

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thrivent High Yield has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Thrivent High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nutanix

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nutanix are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Nutanix may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Thrivent High and Nutanix

The main advantage of trading using opposite Thrivent High and Nutanix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Nutanix can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nutanix will offset losses from the drop in Nutanix's long position.

The idea behind Thrivent High Yield and Nutanix pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.